Whoís Afraid of the Big Bad Central Bank? Union-Firm-Central Bank Interactions and Inflation in a Monetary Union
AbstractExisting models of union-firm-central bank interaction focus on the impact which the central bank has on union behaviour in setting wages. This paper considers an alternative explanation for wage moderation, based on firm-specific factors, whereby the probability of bankruptcy and exit disciplines firms and unions. The exit of firms is a source of employment fluctuation that the union tries to stabilize. We also show that the formation of a monetary union in this model increases the probability of firm exit and may further moderate union wage demands for any given degree of central bank conservativeness.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2002 with number 39.
Date of creation: 29 Aug 2002
Date of revision:
Contact details of provider:
Postal: Office of the Secretary-General, School of Economics and Finance, University of St. Andrews, St. Andrews, Fife, KY16 9AL, UK
Phone: +44 1334 462479
Web page: http://www.res.org.uk/society/annualconf.asp
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-07-08 (All new papers)
- NEP-IFN-2002-07-08 (International Finance)
- NEP-MON-2002-07-08 (Monetary Economics)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If references are entirely missing, you can add them using this form.